Morgan Stanley Would Buy Apple (AAPL) Ahead of Earnings, Checks Indicate Upside, PT Raised

(Updated - January 21, 2021 6:08 AM EST)

Morgan Stanley analyst Katy Huberty raised the price target on Apple (NASDAQ: AAPL) to $152.00 (from $144.00) after end of quarter checks indicate that the company saw strength across its portfolio of Products & Services driven by 5G adoption, work/learn from home, and sustained App Store engagement.

The analyst maintained an Overweight rating, stating "We are buyers ahead of what we expect to be a record December quarter print. Our recent conversations suggest investors expect Apple to release solid, but not great, December quarter results. We disagree and believe that Apple is likely to report all-time record quarterly revenue and earnings. Our checks point to strength across Apple's entire Product and Services portfolio, and we model double digit Y/Y growth for all 5 revenue segments in the December quarter with risk skewed to the upside for iPhone, Mac and Services".

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